China Coffee Pods Market Size, Share, Opportunities, COVID-19 Impact, And Trends, By Type (Hard Pods, Soft Pods), By Caffeine Content (Regular, Decaffeinated), By Flavors (Regular, Flavored), By Distribution Channel (Offline, Online) - Forecasts From 2023 To 2028

Single-portion coffee containers include pods and capsules. Usually, these have 7 grams and 5 grams, respectively, of coffee powder. Pods are constructed from the same kind of material as tea bags. In contrast, capsules feature a protective case composed of plastic or aluminum, which can come in a variety of sizes. This makes it necessary to confirm compatibility with the coffee maker before buying capsules. Pods are more readily disposable and ecologically beneficial, even if they hold more coffee and, hence, scent. Pods and capsules shorten the time needed to brew coffee and streamline the brewing process. 

One of the main factors influencing the industry is the increasing use of coffee makers to simulate a café experience at home. Also, there is an increase in coffee intake since it boosts energy levels, helps burn fat by reactivating the body's metabolism, and enhances productivity and cognitive abilities. This, together with the high caliber, effectiveness, and variety of options provided by coffee capsules and pods, is causing the industry to expand. Also, the general public is becoming more interested in quick non-alcoholic drinks. This, along with the increase in high-end coffee shops throughout the world, is helping the industry.

The growth of the China coffee pods and capsules market is driven by an increase in demand for premium coffee, an increase in retail coffee outlets, an increase in the urban population, consumers' busy lifestyles, and the convenience offered by coffee pods and capsules. On the other hand, the launch of capsules that are 100 percent biodegradable and recyclable is anticipated to open up new potential for market participants.

The China Coffee Association Beijing (CCAB) reports that the yearly growth rate of coffee consumption is 15%. The market's current leaders, such as Starbucks and Nestle, have significantly contributed to the development of China's coffee culture.

Easy availability of coffee pods online to surge market expansion.

Due to a shift in customer tastes and an increase in disposable money, supermarkets and hypermarkets in China now sell coffee pods and capsules of all types and brands, contributing to the market's expansion. Also, more customers are enticed to purchase coffee pods and capsules from these distribution channels by their great exposure, appealing selection, and affordable prices. Nevertheless, because websites are more interactive, feature comprehensive product information, and provide discounts, quick shipping, and simple payment options, the online shop category is anticipated to increase during the forecast period. Over the forecast period, a consistent growth rate is anticipated for the department store segment.

Organic coffee pods are becoming more popular among consumers.

The expansion of the organic coffee market is anticipated to be driven by a rise in the consumption of healthy and organic goods due to the numerous advantages these products offer. Natural and toxic fertilizers, pesticides, herbicides, growth hormones, genetic engineering, artificial preservatives, flavors, and colors are not used in the manufacture of organic coffee. Natural fertilizers and pesticides are used in the cultivation of organic coffee, which raises the cost of production overall. Also, acquiring organic certification and inspection is expensive, which raises the price of organic coffee by an additional 10-15% compared to regular coffee.

Market Key Developments

• In November 2022, To win back customers turned off by Nestle's (NESN.S) metal capsules, which while being recyclable frequently wind up in the garbage, the Swiss packaged food giant is introducing paper-based biodegradable capsules.
• In September 2021, To demonstrate that aluminum coffee pods can be recycled at home, Sainsbury's teamed together with Dualit, a maker of coffee pods, and On-Pack Recycling Label (OPRL).

China Coffee Pods Market Scope:

Segmentation:

• By Type
  • Hard Pods
  • Soft Pods
• By Caffeine Content
  • Regular
  • Decaffeinated
• By Flavour
  • Regular
  • Flavored
• By Distribution Channel
  • Offline
  • Online